FIRST TIME HOME BUYER'S TAX CREDIT

$8,000 Home Buyer Tax Credit at a Glance

-The tax credit is for first-time home buyers only.  A "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house.

-Unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

-The tax credit is equal to 10% of the home's purchase price up to a maximum of $8,000.

-The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.  Anyone who bought a home last year won't be able to take advantage of it.

-Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.  Those earning more than these thresholds may be eligible for reduced credits.

-Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions such as death or divorce may be made)

Want to know more?

GO TO: $8000 Credit for Homebuyers FAQ by the National Association of Home Builders

http://www.federalhousingtaxcredit.com/2009/faq.php

First-time homebuyer tax credit, they can fill out the IRS Form 5405 and claim this amount on line 67 of their 1040 income tax form for 2009. For more information, visit the IRS Newsroom.

The above content is for informational purposes only and should not be used as a substitute for consultation with a tax advisor.

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Home Buyer Tax Credit may not extend.....

http://blogs.wsj.com/developments/2009/10/20/extend-the-home-buyer-tax-credit-not-so-fast/